In pursuance of the conclusions reached by the SBI at its twenty-eighth session (FCCC/SBI/2008/8, para
38), the Secretariat has prepared an information note to review experiences, best practices and lessons
learned on risk management approaches and other appropriate responses to the adverse effects of climate
change, in accordance with Article 4, paragraphs 8 and 9, of the Convention. The production of
this information note has led to the creation of this introductory guide to risk-management approaches
that explores the most important risk-management options available and pilotted today, drawing on a
number of case studies.

According to the Fourth Asssessment Report of the IPCC, there was a rapid increase in
weather-related disasters worldwide between 1980 and 2003. This trend is expected to
continue and intensify in the future, taking a particlarly severe toll in those developing
countries that are the poorest and most vulnerable, such as small island developing states and
least developed countries. Insurance has become a key component of adaptation to climate
change and disaster risk reduction because it can provide economic security and enable
vulnerable populations to pool economic losses, thereby mitigating the impacts of adverse
weather events and avoiding knock-on effects. Different types of insurance schemes are
available and described further in here.

The utilisation and development of environmentally sound technologies is seen as a means to
combat the adverse affects of climate change, in both developing and developed countries.
Innovative technologies have been used as an adaptation option in different economic
sectors.

Economic diversification may be defined as a process in which
a growing range of economic outputs are produced. Sectors such as tourism,
agriculture, fisheries, forestry and energy production are all sensitive to the adverse effects
of climate change. The negative impacts of climate change on these sectors are of concern
to all countries, especially for those whose economies are primarily driven by climate
sensitive sectors.Examples of best practice and
lessons learned are provided for three key sectors.